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| UK savers get £21bn compensation | UK savers get £21bn compensation |
| (10 minutes later) | |
| The cost of protecting UK savers during the credit crisis has been revealed by the body set up to compensate victims of banking collapses. | The cost of protecting UK savers during the credit crisis has been revealed by the body set up to compensate victims of banking collapses. |
| In its latest annual report, the Financial Services Compensation Scheme said it paid out £21bn in the six months after the onset of the crisis. | In its latest annual report, the Financial Services Compensation Scheme said it paid out £21bn in the six months after the onset of the crisis. |
| That compares with just £1bn in the seven years before the crisis. | That compares with just £1bn in the seven years before the crisis. |
| The scheme reimburses up to £50,000 per saver if a bank goes under, paid for by the UK financial services industry. | The scheme reimburses up to £50,000 per saver if a bank goes under, paid for by the UK financial services industry. |
| The report highlights five banks that were responsible for the majority of payouts: Bradford & Bingley; Landsbanki Islands' UK savings arm Icesave; Heritable Bank; Kaupthing Singer & Freidlander and London Scottish Bank. | The report highlights five banks that were responsible for the majority of payouts: Bradford & Bingley; Landsbanki Islands' UK savings arm Icesave; Heritable Bank; Kaupthing Singer & Freidlander and London Scottish Bank. |
| The FSCS also saw a threefold rise in enquiries over the full year - up from 73,000 to 234,000. | The FSCS also saw a threefold rise in enquiries over the full year - up from 73,000 to 234,000. |
| The FSCS charges a compulsory levy on the UK's financial services industry to cover compensation for savers. | The FSCS charges a compulsory levy on the UK's financial services industry to cover compensation for savers. |
| Ths £50,000 limit is per saver, per institution, not per bank. | Ths £50,000 limit is per saver, per institution, not per bank. |
| So for example, if a saver had £50,000 with HSBC and £50,000 with First Direct, then only £50,000 of savings are protected as HSBC and First Direct are different brands of the same institution. | So for example, if a saver had £50,000 with HSBC and £50,000 with First Direct, then only £50,000 of savings are protected as HSBC and First Direct are different brands of the same institution. |
| Last week, the Financial Services Authority (FSA) announced that, from 2011, savers would be compensated faster for lost savings - within 20 days and preferably within a week. | |
| At present, payouts for savers with failed banks can take up to six weeks. |